If we expect friendlier policies from Washington, especially for industries like infrastructure, we can say that companies…
Which Industry will See Growth if Trump wins the 2024 Election?
If Donald Trump is reelected, it will surely impact the stock market, either negatively or positively, as new rules and policies will be introduced that will affect the market.
The question for investors is: Will these stocks continue to grow, or is this just an election spike that won’t sustain after the election is over?
Stocks To Watch If Trump Wins 2024 U.S Election
If we expect friendlier policies from Washington, especially for industries like infrastructure, we can say that companies directly dependent on or connected to the infrastructure sector might see a rise in their stock prices.
Looking at the data from the last five years, you will notice a downtrend. Even if you go back ten or twenty years, there is a clear shift in market psychology and sentiment toward the stock market.
If this is a real shift, then it is likely to last for a while and there’s definitely more upside potential based on our prediction.
Industry Which Could See a Boost if Trump Wins the 2024 Election?
The result of the 2024 US election will be declared in November so as the U.S. Presidential election draws nearer, speculations about its potential impact on different industries are heating up.
Investors and stock market analysts are passing each other the same question “which industry will see a rise if Donald Trump wins U.S 2024 Presidential elections”?
If we look into the past, Trump’s policies, particularly focusing on deregulation, lower taxes and traditional energy are further expected to favor some specific sectors of the economy. So what are those sectors of the economy? In this blog we will discuss the industries which might see a growth if Donald Trump becomes the President.
1. Energy Sector Might Benefit From Trump Wins
If things will go right then the energy sector will be one the most likely beneficiaries of Donald Trump’s presidency and more specifically fossil fuels.
If we look into the past Trump’s administration was known for its support of the oil, coal, and natural gas industries with the introduction of environmental regulations and working on energy independence.
If Trump wins the 2024 election, it is expected that there will be a resurgence in the traditional energy sector. It will benefit companies who are in oil drilling, coal mining and natural gas production.
For example, Peabody Energy Corp (NYSE: BTU) which is a major American coal company can benefit from policies that favor fossil fuels over renewable energy sources under Trump’s rule.
You have probably guessed that if Donald Trump’s policies favor traditional energy sources they will also affect modern energy sources like renewable energy. Yes, to some extent the renewable energy sector will be impacted because these policies do not support it.
2. What a Trump Presidency Means for Defense Spending
If we look historically, after the energy sector, the defense industry is the second sector likely to prosper under the Trump administration.
Most of you already know that Republican governments are known for increasing defense spending and Trump’s previous term followed the same path. As a result, defense contractors, military equipment manufacturers, and other businesses related to defense could see a boost in contracts and stock prices.
For example, Fluor Corp (NYSE: FLR), which has been involved in infrastructure projects for the U.S. government, could see growth as the U.S. increases military spending and security projects.
3. Construction and Infrastructure Projects Under If Trump’s Wins
Trump emphasized the importance of rebuilding America’s infrastructure during his first term, initiating various projects including border wall construction and highway and bridge projects.
So, Trump’s second term could see renewed focus on infrastructure which will benefit construction companies and other related businesses.
Fluor Corp (NYSE: FLR) is a prime example of a company that could benefit if policies fall in the favor of the construction industry. Fluor is a leading engineering and construction firm which may secure contracts for large-scale infrastructure projects, leading to potential growth in its stock value.
4. The Financial Sector's Outlook Following Trump's 2024 Win
The finance sector is the backbone of any country and to a large extent it drives a country’s growth. In the context of America, where many people have financial awareness, the financial sector could also experience growth under a Trump presidency. This would benefit ordinary people who are active (retail) investors in companies. On the other hand, Trump’s approach to deregulation and tax cuts would favor banks and financial institutions.
If Washington implements policies that cut corporate taxes, financial companies could see a boost in revenue.
Example of a financial company which could see a growth if Trump wins
JPMorgan Chase & Co (NYSE: JPM)- one of the largest banks in the United States could benefit from the introduction of new policies or just a change which favors banks and financial institutions.
5. The Effect of Trump's Policies on Steel and Manufacturing Success
Many people view the manufacturing and steel sectors as declining industries from an investment point of view but if Trump wins the election, these industries can experience a revival.
During his previous term, Trump imposed tariffs on imported steel and aluminum to protect American manufacturers from foreign competition. If he returns to office, similar types of policies can be reintroduced which will again benefit domestic steel manufacturers.
Example of a Steel manufacturing company which could see a growth if Trump wins
VALE S.A (NYSE: VALE) is a leading global producer of iron ore and nickel which could see growth if U.S. steel production increases under Trump’s policies.
6. Digital and Media Companies
Today, if Trump wants to run campaigns, communicate with people, or give interviews, where will he do this?
Of course, on platforms where most people are spending their time and attention. This is one reason why Elon Musk’s Twitter reinstated Trump’s account. During his previous administration, Trump was known for using social media platforms to communicate directly with the public, so his return to power could benefit the online platforms associated with him.
Digital World Acquisition Corp (NASDAQ: DWAC), the special purpose acquisition company linked to Trump Media & Technology Group, could benefit from a Trump victory.
If Trump regains the presidency, there could be a surge in user engagement and advertising revenue for Truth Social, the social media platform associated with his media group.
7. Agriculture and Rural Economy
Agriculture and rural economy will surge if Trumps reelected in 2024 U.S election. If we look back at his previous term, Trump introduced policies like giving subsidies and trade deals that benefited agricultural exports which ultimately benefited farmers.
So, we can say that companies which are making farm equipment or managing agricultural operations at a large scale could see growth.
Industry Growth Outlook Following a Potential Trump Election Victory
If Trump is reelected in the 2024 U.S. election, will he (and his party) approach today’s problems with the same mindset, policies, and regulations as in their previous term, or will they come up with new strategies to tackle current challenges? That remains a question, but let us see what happens.
We have discussed industries and companies based on his previous term’s policies but remember that the stock market can be unpredictable. Historical data gives some insights but it does not guarantee that it will work as predicted. As always, investors should do their homework of doing proper research and analyzing their risk tolerance before doing any investment.
What industries are expected to benefit from a Trump presidency?
If Trump wins, industries like energy, particularly fossil fuels may see a rise due to the potential deregulation and support for the oil and gas industry. The defense sector is also likely to boost if we look at Trump’s historical focus on military spending.
How might the healthcare industry be affected?
The healthcare sector could experience shifts depending on Trump’s policies regarding the Affordable Care Act (ACA).
What role will immigration policy play in industry trends?
Trump’s stance on immigration could significantly affect industries reliant on immigrant labor like agriculture and construction.
How will trade policies influence U.S. industries?
Trump’s approach to trade including tariffs & renegotiations of trade agreements will impact manufacturing and agriculture. Industries that are heavily dependent on exports will face challenges or opportunities depending on Trump’s stance on international relations.
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